QUALCOMM, Inc. Misses Earnings Estimates, Stock Dives

QUALCOMM, Inc. (NASDAQ:QCOM) released the earnings results from its most recently completed quarter after closing bell tonight, posting earnings excluding items of $1.26 per share, a 25% year over year increase, on $6.69 billion in revenue, a 3% year over year increase but a 2% quarter over quarter decline. Analysts had been expecting the technology company to report earnings of $1.32 per share on $7.03 billion in revenue for the fourth fiscal quarter. In the same quarter last year, Qualcomm reported earnings of $1.05 per share on $6.48 billion in revenue.

Key metrics from Qualcomm’s earnings report

Reported earnings per share were $1.11, compared to 68 cents in the same quarter last year. Operating income was $1.99 billion, a 25% year over year increase and 4% sequential decline. Operating cash flow for the fourth quarter fell 36% year over year to $1.62 billion and made up 24% of revenues.

For the full year, Qualcomm’s revenues rose 7% to $26.49 billion. Diluted earnings per share rose 19% to $4.65 per share. Non-GAAP earnings rose 17% year over year to $5.27 per share for the full year.

Qualcomm ships more chips, returns capital to shareholders

Qualcomm reported 236 million MSM chip shipments, a 24% year over year increase, for the fourth quarter. For the full year, the company shipped 861 million MSM chips, a 20% improvement year over year.

The company also returned $1.9 billion to shareholders, including repurchasing $1.2 billion worth of shares, which amounted to 15.6 million common shares. The company also paid $702 million in dividends, or 42 cents per share.

Qualcomm provides guidance

The chip maker said it sees “significant opportunities” in China, especially in connection with the 3G / 4G LTE rollout. However, the company is still being investigated by the China National Development and Reform Commission.

Qualcomm projects first quarter revenues of between $6.6 billion and $7.2 billion. The company expects non-GAAP earnings per share to be between $1.18 and $1.30 for the first quarter. Qualcomm expects GAAP earnings to be between $1 and $1.12 per share.

For the full 2015 fiscal year, the chip maker expects revenues of between $26.8 billion and $28.8 billion, non-GAAP earnings of between $5.05 and $5.35 per share, and GAAP earnings of between $4.33 and $4.63 per share.